Point of sale (pos) systems and methods for making tax payments

ABSTRACT

A standalone device, systems, and methods of using them that are dedicated for making tax payments directly to a government authority without being coupled with electronic filing of tax returns or other filing or processing documents.

BACKGROUND OF THE INVENTION

1. Field of the Invention

The present invention relates generally to electronic financialtransactions, and more particularly to systems and methods forelectronic payment transactions for making tax payments to governmentauthorities from a remote location.

2. Description of the Prior Art

Generally, it is known in the art to conduct financial transactionsusing a network-based system for transmitting and receiving electronicpayments. By way of example, it is known to make electronic paymentsover a network such as the Internet by transactions involving paymentsfrom individuals' and business' credit, debit, prepaid, ATM card, PayPalaccount, Bill Me Later account, or other electronic payment methods(“Electronic Payment”) for various types of payment transactions.

More specifically, concerning government-related transactions,particularly in the US, most systems do not provide for individualpayments to be made using credit cards or other electronic paymentmethods, such as emerging electronic payment methods for making paymentsthrough non-traditional third parties other than banks, credit cards,etc., even though they are commonly used in online commerce for makingpayments for everything from services to goods. While it is known in theart to use point-of-sale (POS) devices for making payments with creditcards, debit cards, or electronic funds transfer (EFT) for varioustransactions, these documents do not provide POS devices for makingpayments of taxes, for example to the federal government in the UnitedStates. Furthermore, it is known in the art to provide payment of taxesthrough a website over the internet or computer-downloadable softwareusing EFT payment or credit card payment, they do not provide for astandalone device or system.

Also, and by way of related example, presently, the US Internal RevenueService (IRS) and other state income tax departments allow individualsto make electronic payments using their credit cards and debit cards(“Cards”) through various third party organizations. These third partyorganizations collect funds from a number of individuals byelectronically charging their Cards. The organizations then make lumpsum, bulk, pooled, or batch payments to the taxing authority, based on aseparate payment file or multiple files, for all individuals payingwithin a specific time period using the third party's own bank accounts.

Examples of some relevant art documents that describe income taxpreparation kiosks that receive and process user data and allow the userto pay at the kiosk with cash, credit or debit cards include thefollowing:

US Pub. No. 20050038722 for Methods, Systems, and Computer ProgramProducts for Processing and/or Preparing a Tax Return and InitiatingCertain Financial Transactions.

A method of processing a tax return, comprising:

Receiving tax information associated with a taxpayer, wherein the taxinformation is in a plurality of formats;Converting the tax information into a common electronic format anddetermining if the tax information is sufficient to generate a taxreturn therefrom.Processing the tax information to generate a tax return if the taxinformation has been determined to be sufficient.Also describes that the data processing system may be embodied as aself-serve tax kiosk or a self-standing machine.

US Pub. No. 20020013747 for a Method and Apparatus for Electronic Filingof Income Tax Returns by a Taxpayer

Describes a method for taxpayer self-preparation of income tax returnscomprising the steps of entering, by the taxpayer, data into a publiclyaccessible electronic data processing machine, converting taxpayer datainto a electronic tax return data file and transmitting the taxpayerdata and the data file to a remote processing center by electronic meansFurther describes that the business process system looks like afree-standing ATM, internet access kiosk or check cashing kiosk. Theinvention is described as a self-service tax preparation and electronicfiling (e*file) device for Federal and State income tax returnsFurther describes that the device has a magnetic card reader forcredit/debit card payments

US Pub. No. 20060010050 for Income Tax Preparation Kiosk

Claims a kiosk that receives and scans data to be processed by the database/individuals receiving the data input at the kiosk or some otherremote location.Further describes that the kiosk will produce a copy of documentspertaining to the tax year requested by the customer.Further claims a method for inputting W2's, scanning social securitycards, drivers licenses/any other pertinent information for income tax.Further describes that the customers will be able to pay at the kioskwith credit or debit cards

Further claims presenting the taxpayer with options for paying the taxcomprises: filing the tax return electronically; and paying the tax viacash, credit/debit card, and/or an electronic transfer of funds.

U.S. Pub. No. 2008/0097878—System and method for payment of estimatedtax due, which teaches a system and method for estimating and payingincome taxes consisting of: a means of receiving financial informationfor an individual; calculating the estimated tax due on the individual'sincome; occasionally withdrawing an amount of money from theindividuals' account; placing withheld funds in a secondary accountuntil the funds available in the secondary account equal or exceed theestimated tax liability; transferring the final amount of money in thesecondary account to the applicable taxing authority.

U.S. Pub. No 2002/0013747—Method and apparatus for electronic filing ofincome tax returns by a taxpayer, which teaches a method and freestanding device to allow an individual to enter data, prepare taxreturns, file tax returns, and remit payment or receive a refund. Themethod includes provisions for the applicable transfer of funds througha remote service provider, other third party, or by smart card.

U.S. Pat. No. 6,202,052—Fully-automated for tax reporting, payment andrefund.

U.S. Pat. No. 6,697,787—System for collecting tax data, which teachessystem in which an electronic intermediary processes, reports, andarranges for the appropriate transfer of funds in the form of payment orrefund involving: receipt of tax data by the intermediary; processing ofsaid data and subsequent preparation of tax return; filing the taxreturn; arranging for the appropriate transfer of funds (payment orrefund).U.S. Pub. No 2001/0037268—Fully-automated system for tax reporting,payment and refund and system for accessing tax information, whichprovides method and system for gathering information form sources toassemble tax information on individual taxpayers, preparing tax returnsbased on acquired information, filing the return with taxingauthorities, and connecting to a financial institution to pay anyliability or receive a refund.

SUMMARY OF THE INVENTION

The present invention is directed to methods for processing paymentselectronically over a network-based system, such as Internet, phone,wireless communications, and other channels, wherein a third party orintermediary facilitates payment transactions in order to simplify andenable the processing of payments on behalf of individuals through alltypes of electronic, network-based payment methods without requiringpayment integration by the payment recipient.

One aspect of the present invention provides a method for processingpayments electronically over a network-based system including the stepsof:

(a) providing a dedicated device for making payments directly to agovernment entity for receiving and remitting payments from individuals;

(b) initiating a transaction for making a payment on behalf of anindividual;

(b) receiving electronic payment information or data and correspondingauthorization for a government tax payment from an individual account,such as a credit card or debit card; and

(c) providing the electronic payment data directly to the government forimmediate credit of the tax payment by the individual, withouttransmission or submission of any tax filing documentation at the timeof the payment.

Significantly, the tax payment does not correspond to a tax filingcomponent or data; rather, it is simply providing a direct payment tothe government for tax or other government fees due by an individual viaa freestanding, dedicated device.

A second aspect of the present invention is to provide systems andmethods for making individualized electronic payments directly togovernment entities or agencies, such as the IRS, state tax departmentsor other government agency through a dedicated freestanding device thatpreferably is integrated with the government payment system(s) providingimmediate credit for the payment by the individual without the requiringor including any tax filing documents. In one embodiment, an individualenters his/her unique taxpayer identification number, such as but notlimited to social security number or other government-assigned taxpayeridentification, and provide a credit card or debit card and itscorresponding information for making an electronic payment via thededicated device for receipt directly by the government.

These and other aspects of the present invention will become apparent tothose skilled in the art after a reading of the following description ofthe preferred embodiment when considered with the drawings, as theysupport the claimed invention.

BRIEF DESCRIPTION OF THE DRAWINGS

FIG. 1 is a PRIOR ART flow diagram illustrating steps for making apayment to a government entity by an individual.

FIG. 2 is a flow diagram illustrating steps for making electronicpayments by an individual directly to the government via a dedicateddevice, according to one embodiment of the present invention.

FIG. 3 is a PRIOR ART flow diagram.

FIG. 4A and FIG. 4B form a continuous (connected) flow diagram of PRIORART methods for credit card integrated file and bulk payment to paymentrecipient for an IRS example.

FIG. 5 is a schematic diagram showing a multiplicity of dedicateddevices and networked connection for making the payments directly to thegovernment by individuals and/or taxpayer entities represented byindividuals using the devices.

DETAILED DESCRIPTION

The term “payment” or “payments” as used hereinbelow in the detaileddescription of the invention and preferred embodiments is defined as afinancial transaction that may either be a debiting from an account or atransfer initiated from that account.

Referring now to the drawings in general, the illustrations are for thepurpose of describing a preferred embodiment of the invention and arenot intended to limit the invention thereto. The present inventionprovides methods of electronically processing individual income taxpayments from a remote location to the government tax payment authority.

Furthermore, it is known in the art to provide payment of taxes througha website over the internet or computer-downloadable software using EFTpayment or credit card payment, they do not provide for a standalonedevice or system that is dedicated for making tax payments to agovernment authority as provided by the present invention with a kioskor other standalone, dedicated device that is not coupled withpreparation and filing of tax returns, tax forms, or other documentationassociated with taxes.

Since the prior art set forth in the foregoing does not provide thesolutions that continue to exist as a longstanding and unmet need, thereremains a need for a system and methods for processing paymentselectronically from a remote location to simplify and enable theprocessing of payments only where individual users would not otherwisebe able to participate or complete the transaction directly with thegovernment entity, or where individual payments made through anelectronic kiosk-type system or device would simplify the processing andextend the electronic payment options, separate and apart from filingany forms or tax documents. There also remains a need for facilitateindividualized Electronic Payments to be made to government entities,such as the IRS, state tax departments remotely and without beingcoupled to tax filing documents.

The present invention provides a method for processing paymentselectronically over a network-based system including the steps of:

(a) providing a dedicated device for making payments directly to agovernment entity for receiving and remitting payments from individuals;

(b) initiating a transaction for making a payment on behalf of anindividual;

(b) receiving electronic payment information or data and correspondingauthorization for a government tax payment from an individual account,such as a credit card or debit card; and

(c) providing the electronic payment data directly to the government forimmediate credit of the tax payment by the individual, withouttransmission or submission of any tax filing documentation at the timeof the payment.

Significantly, a direct tax payment made using the dedicated device andmethods of using same according to the present invention does notrequire and does not correspond to a tax filing component or datasubmitted therewith; rather, the direct payment to the government fortax or other government fees due by an individual via a freestanding,dedicated device includes submission of an electronic payment by anindividual or corporate entity identified by and associated with aunique taxpayer identification.

Additionally, the present invention provides systems and methods formaking individualized electronic payments directly to governmententities or agencies, such as the IRS, state tax departments or othergovernment agency through a dedicated freestanding device thatpreferably is integrated with the government payment system(s) providingimmediate credit for the payment by the individual without the requiringor including any tax filing documents. In one embodiment, an individualenters his/her unique taxpayer identification number, such as but notlimited to social security number or other government-assigned taxpayeridentification, and provide a credit card or debit card and itscorresponding information for making an electronic payment via thededicated device for receipt directly by the government.

More specifically, as illustrated by the flow diagram of FIG. 2, thepresent invention provides a method for making electronic financialtransactions for payments to government entities or agencies directlyincluding the steps of: providing a network for making electronic datacommunications, including secure transmission of payment data fortransmitting payments between a dedicated device, such as but notlimited to a point of sale (POS) payment device and a government paymentrecipient, without including any tax filing or other tax documentationtherewith; initiating a transaction over the network via the dedicatedpayment device for making an electronic payment on behalf of anindividual taxpayer or taxpaying entity owing the government entity atax payment or fee; the dedicated device operable for receivingauthorization and data for electronic payment by the taxpayer; receivinga unique taxpayer identification; providing payment data and uniquetaxpayer identification to the government payment recipient relating tothe tax payment made directly and without submission of correspondingtax documents for making a tax filing. Optionally, an additional step ofreceiving confirmation of the payment data processing by the paymentrecipient may be included, confirming the immediate credit of thepayment to the taxes and/or fees owed to the government by the taxpayer.Alternatively and also optionally, an additional step of receivingnotice of a declined transaction is provided.

FIG. 3 is a PRIOR ART flow diagram illustrating a tax liability bankaccount direct debit (not credit card) process wherein the individualpayor account information is provided to the payment recipient for a taxpayment example.

FIG. 4A and FIG. 4B form a continuous (connected) flow diagram of PRIORART methods for credit card integrated file and bulk payment to paymentrecipient for an IRS example. In this extended flow diagram, a creditcard integrated file and bulk payment filer process is illustrated,including the individual payor (taxpayer) provides his/her ownindividual credit card or debit card information for making the paymentdirectly to the payment recipient (IRS, in this example). Note that forreconciliation, the tax authority (payment recipient) requiresintegration for the electronic filing process and the credit card bulkfiler process. If there is an intermediary, it must submit a batchpayment file in order for the tax authority to reconcile taxpayer datato the bulk payment amount. In order to add other electronic paymentmethods (other than credit or debit card), the tax authority must makepayment file modifications for each request. This adds development,testing, and costs for the tax authority, and thus, may prevent otherforms of electronic payments from being accepted, including credit cardsin some cases.

FIG. 5 is a schematic diagram showing a multiplicity of dedicateddevices or terminals and networked connection for making the paymentsdirectly to the government by individuals and/or taxpayer entitiesrepresented by individuals using the devices. FIG. 5 illustratesconfigurations for the example of making a tax payment. Significantly,the government payment recipient does not require or accept a tax filingdocument at the time of receipt and acceptance of the electronicpayment.

With the present invention methods, individuals are able to makeelectronic payments through any of the dedicated devices associated withthe network for making secure payments directly to the government usinga credit card or debit card, and by providing an unique taxpayeridentification.

The taxpayer may use any of the dedicated devices or remote terminals orkiosks, and is not required to submit payments through the samededicated device as with prior payments being submitted. Multiplepayments for individual accounts with corresponding unique taxpayeridentifications may be involved, wherein the tax payment is submitteddirectly for each entity by an authorized individual with acorresponding authorized credit card or debit card.

By contrast to the present invention, as illustrated by the PRIOR ARTFIG. 1 flow diagram, it is known for individuals such as individual taxpayers to make electronic filing of forms including payments. However,these transactions associated with the electronic filing and paymentrequires the government agency to collect funds from each individual byelectronically debiting bank accounts individually or debit theintermediary account once for a batch of individual payments. It is alongstanding and unmet need that individual taxpayers cannot make creditcard or debit card payments directly to the government via a dedicateddevice without coupling the payment to a tax filing or tax documentsubmissions at the same time. Thus, the present invention solves theproblems of the prior art by providing a dedicated device securelynetworked with government entities or agencies payment receiving systemsthat function to allow individual taxpayers to make a tax paymentelectronically without submitting a tax document or tax filing with itsimultaneously.

The present invention provides for a technology supporting methods tofacilitate electronic credit card and debit card payments to be made tothe IRS or other government agency directly through such a freestanding,dedicated device or terminal, such as a POS device or kiosk thatrequires only the unique taxpayer identification and a credit card ordebit card information that that taxpayer is authorized to use formaking the payment. By way of example but not limitation, the networkmay be limited to IRS networks for making secure transmissions betweenthe over 400 offices distributed throughout the US and the IRS centralsystem or server(s) and the devices may be located at those offices.However, the devices may also be connected via more open networks whileproviding for secure payment transmissions using the credit card ordebit card information and the unique taxpayer identification, allwithout coupling the payment with a tax filing or any tax documentsubmission at the time of payment.

The present invention provides a method of completing electronicpayments from individuals' and business' credit, debit, prepaid, ATMcard, or other electronic payment methods, and combinations thereof,hereinafter defined and referred to as individually and collectively aselectronic payments, to a taxing authority such as the IRS or stategovernment, via any of the dedicated device(s) without submitting taxdocuments therewith. Preferably, immediate credit for the payment isprovided by the government receiving entity for the tax payment madefrom the device, and the device provides an output or visual indicatorof the confirmation of the successful payment and credit therefor.

Additionally, the present invention provides methods that facilitateindividualized electronic payments to be made to the IRS, state taxdepartments, government agencies, and the like.

The present invention and preferred embodiments supporting best mode ofapplication thereof as set forth in the foregoing, are supplied asexamples and not intended to limit the scope of the invention thereto.By way of example and not limitation, applicable areas for the systemsand methods of the present invention include the following: the publicsector or government entities where individual taxpayer electronicpayment is not available; the Federal government (e.g., individualincome taxes, business taxes); state governments (e.g., individualincome taxes, business taxes, sales and use tax, corporate filings,business licenses, other fees or licenses, etc.); local government(e.g., taxes, permits, court fees and fines, citations, etc; andcombinations thereof.

With regard to federal and state income taxes, for example, thegovernment will accept payment directly through the systems and methodsof the present invention without validation of payment owed or taxfiling documentation supporting the same. Since the government does nothave confirmation of how much is owed for taxes at all times, forexample with estimated quarterly taxes, the present invention providesthat a taxpayer can provide for payment toward taxes owed without filinga return therewith.

Regarding the example of property taxes, the present invention providesfor automated integrated remote payment of taxes directly—via check,credit card, etc. and received a notation automatically and immediatelynoted as paid, and the payment is made via the dedicated device (forexample but not limitation, POS credit card system) integrated withgovernment payment tax system, so that the system automatically updatespayment records at the time the electronic payment is provided toindicate that they payment is received.

Certain modifications and improvements will occur to those skilled inthe art upon a reading of the foregoing description. The above-mentionedexamples are provided to serve the purpose of clarifying the aspects ofthe invention and it will be apparent to one skilled in the art thatthey do not serve to limit the scope of the invention. All modificationsand improvements have been deleted herein for the sake of concisenessand readability but are properly within the scope of the presentinvention as set forth in the claims.

1. A method for processing payments electronically over a network-basedsystem comprising the steps of: (a) providing a dedicated device formaking payments directly to a government entity for receiving andremitting payments from individuals; (b) initiating a transaction formaking a payment on behalf of an individual; (c) providing a uniquetaxpayer identification associated with the transaction payment; (d)receiving electronic payment information or data and correspondingauthorization for a government tax payment from an individual account;and (e) providing the electronic payment data directly to the governmentfor credit of the tax payment by the individual, without transmission orsubmission of any tax filing documentation at the time of the payment.2. The method of claim 1, wherein the step of providing payment includesproviding credit card or debit card information.
 3. The method of claim1, wherein the steps (a) through (d) are repeated from correspondingdevices for a multiplicity of individuals and their respective taxaccounts.
 4. The method of claim 1, further including the step ofproviding a unique taxpayer identification associated with the taxpayment.
 5. A system for making direct electronic tax payments togovernments comprising: at least one dedicated device for receiving anunique taxpayer identification and credit card or debit cardinformation; wherein the device(s) are coupled to a network forsecurely, electronically transmitting the electronic payment directly tothe government from the device(s) based upon the inputs provided by ataxpayer user, without including transmission of any tax filingdocuments.
 6. The system of claim 5, wherein the dedicated device is afreestanding device.